Jim Cramer Taps the Brakes on Circle Internet Stock After Red-Hot Market Debut

Circle’s wild IPO pop may have dazzled investors, but Cramer says don’t get burned chasing the hype.

The glow-up was massive. Circle Internet, the company behind the USDC stablecoin, burst onto the stock market last week with a bang. The IPO opened at more than double its offering price. Investors flooded in. Momentum took over. But not everyone’s convinced it’s time to ride the rocket.

On Monday, Jim Cramer, host of CNBC’s Mad Money, issued a warning. Not about Circle’s business — which he actually likes — but the stock itself. His take? Wait it out. “It’s too hot,” he said. “Let it cool off.”

Circle’s Launch Was Straight Fire — But That’s Also the Problem

Circle’s IPO was one of those rare moments where the Street sat up and took notice. Priced at $31, shares opened at $69 and went vertical — finishing the day up 168%. That kind of move doesn’t happen every week, not even in tech.

But according to Cramer, that early fire might burn latecomers.

The company’s valuation exploded from $5.5 billion to roughly $25 billion in no time. “That’s a big leap,” he said. “Great business or not, those numbers make it hard to justify jumping in now.”

And he’s not alone in feeling jittery about hot IPOs. The market’s been on a tear lately. AI names, crypto-adjacent stocks — they’re flying. But afterburn isn’t guaranteed.

What Circle Does — And Why It Matters to Crypto

So, what exactly is Circle?

Well, it’s not your average software unicorn. The company issues USDC, a dollar-pegged stablecoin that acts like digital cash in the crypto economy. If Bitcoin is gold, USDC is the $100 bill in your online wallet.

Cramer described stablecoins like casino chips — you trade them in, use them to place bets (like buying Bitcoin or Ethereum), but they’re pegged to a known value. USDC is considered safer than others. Especially Tether’s USDT, which is bigger, but also shadier.

He noted:

• USDC is backed 1:1 with real fiat reserves.

• Circle publishes regular attestation reports to show the money’s there.

• The company operates more transparently than Tether.

“I see USDC as the cleanest stablecoin out there,” Cramer said, calling it “a sanitized version” of crypto’s riskier tools.

Impressive Financials — But Still a Crypto-Linked Play

Circle may be clean, but it’s still tied to an unpredictable space. The crypto world can turn on a dime — and often does.

Cramer acknowledged the company’s books look solid. Demand for USDC is real. Usage is high. Revenue streams are holding up. But none of that insulates Circle from broader market sentiment.

A single Bitcoin crash? Regulatory noise? One hacking headline? All could hurt Circle’s narrative — and its stock price.

So while the company might be “legit,” that doesn’t mean investors won’t face turbulence.

“This isn’t Apple or Procter & Gamble,” Cramer reminded viewers. “You’re still buying into crypto. Be ready for the ride.”

IPO Frenzy Heating Up — Again

It’s not just Circle making waves. Other newly public firms are seeing similar mania.

Take CoreWeave, for example. The AI infrastructure company debuted back in March at $40. Flat at first. But now? It’s hovering around $162. That’s more than a 300% move in just three months.

Cramer flagged that as another example of IPO euphoria possibly getting out of hand.

Here’s how some recent IPOs have fared:

“Look, these are exciting stories,” he said. “But you don’t have to be first. Let things settle.”

Investors Torn Between FOMO and Patience

Cramer’s take may not be what hype-driven traders want to hear, but it reflects a broader tension in the market.

There’s a real fear of missing out. New tech. New coins. New AI startups. It’s seductive stuff.

But there’s also wisdom in waiting.

For those on the sidelines, Circle might feel like a missed opportunity. But if you ask Cramer, it’s the opposite. “This could be one of those cases where waiting actually gets you a better deal,” he said.

Some investors have already begun trimming their positions. Others are doubling down. No clear consensus yet — but plenty of eyes watching closely.

And with the Federal Reserve expected to hold rates steady again this month, tech and speculative names may see more volatility. That’s another reason for caution.

Cramer’s Bottom Line: Chill Out and Let the Stock Breathe

Ultimately, the Mad Money host isn’t calling Circle a bad company. Far from it. He sees real promise.

What he doesn’t see is value — at least not at current prices.

“This isn’t a buy-the-dip situation,” he said. “It’s a wait-for-the-dip moment.”

Could Circle be a long-term winner? Absolutely. But for now, with the stock overheated and the sector still unpredictable, Cramer’s advice is plain: “Sit tight.”

Let others chase the rocket. You can always catch it when it swings back down.